Dow Chemical
Co, the largest chemical maker in the United States, said on Tuesday it
plans to cut 5 percent of its workforce and shutter 20 plants as part
of a restructuring program aimed at countering a slowing global economy.
Dow
and other chemical companies face slipping demand for products around the world. Rival DuPont slashed its earnings forecast and announced 1,500 job cuts.
"The reality is we are operating in a slow-growth environment in the near-term and, while these actions are difficult, they demonstrate our resolve to tightly manage operations..." Andrew Liveris, Dow's chairman and chief executive, said in a statement.
The company, which hopes to save $500 million a year, said the cuts would result in a loss of around 2,400 positions worldwide.
Among its planned plant closings, Dow will shutter a high density polyethylene facility in Belgium, a sodium borhidrate plant in the Netherlands, and a manufacturing facility in Midland, Michigan.
The company will also take an unspecified charge related to its Dow Kokam LLC assets, reflecting weak demand for lithium-ion batteries.
Dow
and other chemical companies face slipping demand for products around the world. Rival DuPont slashed its earnings forecast and announced 1,500 job cuts."The reality is we are operating in a slow-growth environment in the near-term and, while these actions are difficult, they demonstrate our resolve to tightly manage operations..." Andrew Liveris, Dow's chairman and chief executive, said in a statement.
The company, which hopes to save $500 million a year, said the cuts would result in a loss of around 2,400 positions worldwide.
Among its planned plant closings, Dow will shutter a high density polyethylene facility in Belgium, a sodium borhidrate plant in the Netherlands, and a manufacturing facility in Midland, Michigan.
The company will also take an unspecified charge related to its Dow Kokam LLC assets, reflecting weak demand for lithium-ion batteries.
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